Money SA economy
The rand surged against major currencies on Friday afternoon after better than expected US jobs data which has eased concerns over the pace of the US economic recovery.
At 4pm local time the rand was bid at R7.14 to the dollar, R9.21 to the euro and R11.04 to the pound. The euro was bid at USD1.2868 from USD1.2822 overnight.
"Everything is firmer on the US employment figures which have come in better than anticipated," a local currency trader said. Dow Jones Newswires reports that the dollar gained sharply against the yen Friday after better-than-expected U.S. jobs figures soothed investor nerves that had been jangled by worries over the pace of the U.S. recovery.
Currencies closely tied to the pace of global growth, such as the Australian and Canadian dollars, took advantage of the improved sentiment, rising strongly against the greenback as investors abandoned the perceived safety of the U.S. dollar for riskier assets.
"The reaction has been considerable," said Alan Ruskin, global head of G10 foreign exchange strategy at Deutsche Bank in New York, "indicative of a market that has become too pessimistic on risks of a double-dip," recession, he said, leading investors to dip back into growth-sensitive currencies.
Job losses continued to mount in the US economy in August, though at a more modest pace than expected.
